New Delhi: Prime Minister Narendra Modi on Sunday called on all state governments to accelerate manufacturing and create an investor-friendly atmosphere, as India prepares to implement its next-generation Goods and Services Tax (GST) reforms from Monday.
Describing the reforms as a “double bonanza” for the poor, neo-middle class, and middle class, PM Modi said the simplified tax regime would strengthen Bharat’s growth story, improve ease of doing business, attract fresh investments, and make every state an equal partner in the nation’s development.
“Next-gen GST reforms being implemented from tomorrow are like a ‘GST saving festival’ for every Indian,” the Prime Minister said in a televised address. “From tomorrow, you will be able to buy your favourite items with ease.”
India first adopted GST in 2017, subsuming more than a dozen state and central taxes under the “one nation, one tax, one market” principle. The earlier four-tier structure — 5%, 12%, 18%, and 28% — often faced criticism for complexity. Earlier this month, the GST Council simplified the system to just two slabs — 5% and 18% — with higher rates continuing only for luxury and “sin” goods such as cigarettes and luxury cars.
PM Modi said the reform was a symbol of cooperative federalism and urged states to contribute actively to India’s economic growth. “I urge all state governments to support the Aatmanirbhar Bharat initiative and the Swadeshi programme by accelerating manufacturing within their states. Focus on creating an environment conducive to attracting investments,” he said. “Together, when the states and the Centre work in unison, the vision of Aatmanirbhar Bharat will be realised.”
Drawing parallels with the Swadeshi movement of India’s freedom struggle, the Prime Minister said that India’s prosperity would once again be empowered by the mantra of swadeshi. He urged citizens to buy and sell locally made goods, adding that the reforms would particularly benefit Micro, Small and Medium Enterprises (MSMEs).
“I have huge expectations from MSMEs. When India was at the peak of its prosperity, MSMEs were its foundation. We need to reachieve that. Our product quality should make India proud. Every home and shop should represent swadeshi this will accelerate India’s progress,” PM Modi said.
